Mulally provides hope for Ford fans

Ford stock is dirt cheap, but not many analysts would recommend a buy on the stock and probably with good reason.

Still, one has to take note of Ford's new leader, Alan Mulally. Mulally is a long time fan of Toyota, particularly due to Toyota's manufacturing process - a process he hoped to replicate as an executive at Boeing. In fact, Mulally has called himself "a disciple of the Toyota production system," according to the DetroitNews. Moreover, when Mulally, along with the leaders of GM and Chrysler, met with the President a couple of months ago, it was Mulally whom was by far the most optimistic. It just seems as if Mulally realizes that the future of American automakers will require a revolution in process and in thinking. In a word, however, that revolution can be defined by efficiency.

Whether it is efficiency in production, in supply chains or in fuel economy, the mantra of efficiency can be a game changer for American automakers.

Consequently, I was very excited to hear that Ford is in discussions with Toyota regarding efficiency. Whether production efficiency or hybrid vehicle efficiency, it's obvious Ford can learn a thing or two from Toyota. While some analysts have questioned what Toyota might have to gain from a partnership with Ford, I say they have a lot to gain.

For example, yesterday, I noted that a hybrid partnership would benefit Toyota by making their hybrid powertrain more standard, which would give suppliers more incentive to develop Toyota-friendly hybrid parts. Obviously, more hybrid suppliers would lead to cheaper hybrid parts. Furthermore, Toyota would also receive a license fee from Ford which would help fund Toyota's hybrid development costs.

While none of this might work out, I think there is great potential for both companies. Obviously, Ford needs help, and Toyota knows a strong Ford is good for Toyota, especially if Toyota can create a nice revenue stream from a successful Ford.

Regardless, Mulally should give Ford fans great hope.